The Internal Revenue Service (IRS) recently released Notice 2009-68, Safe Harbor Explanation – Eligible Rollover Distribution. Notice 2009-68 contains two safe harbor explanations that employers may use to provide recipients the written explanation of distributions eligible for rollover treatment required under §402(f) of the Internal Revenue Code of 1986 (IRC). These explanations update the previously released explanations first published in Notice 2002-3, 2002-1 CB 289 for recent law changes.
The first safe harbor explanation applies to a distribution not from a designated Roth account (as described in IRC §402A). The second safe harbor explanation applies to a distribution from a designated Roth account.